In short, the answer is no. By law you are not required to have yacht insurance, but should you cause damage to another party’s property or the environment, you could be liable and will have to pay these costs out of pocket. The same goes for injury to others or your guests onboard.
Liability Only Insurance coverage for yachts protects you against damage or injury that you do to others and their property. Many marinas and boatyards will require an owner to carry liability insurance.
What Yacht Insurance coverage should I have: Agreed Value or Actual Cash Value?
When is comes to Yacht Insurance, there are 2 types of cover:
1. Agreed Value: An agreed Value yacht policy will pay for the previously agreed value of the yacht in the event of a total loss. In the event of a partial loss, most agreed value yacht policies would replace or fix parts on a “new for old” basis.
2. Actual Cash Value: An actual cash value yacht policy will pay the value of the vessel, subject to depreciation.
We highly recommend an Agreed Value Yacht Policy, as you know how much you will receive in the event of a total loss., but should you wish to have an Actual Cash Value policy, we can arrange one as well.
What is a “Lay –Up” period?
A lay up period is a period of time in which the yacht is stored on land and not being used. The yacht must be winterized and may not be used as a home.
Yacht insurance companies often offer premium discounts for a consecutive layup period., so be sure to speak to your yacht insurance agreement if you haul your yacht for extended periods.
Do I have to pay yacht insurance premiums all at once, or are there payment plans?
Many of our yacht insurance providers offer premium payment plans. If this is not available, independent companies offer premium financing.
Is wakeboarding covered under my Yacht Insurance Policy?
Most of our yacht insurance policies include coverage for water sports, which includes water skiing and wakeboarding. Be sure to read your policy to confirm whether you are covered for water sports.